Professional Documents
Culture Documents
Introduction
Because all companies have limited resources, they must be careful in making the following decisions: 1. In which countries to locate sales, production, and administrative and auxiliary services 2. The sequence for entering different countries 3. The amount of resources and efforts to allocate to each country where they operate
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
Introduction
The Location Decision Process
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
Introduction
Location Decisions Affecting International Operations
Risks
Political Risk Monetary Risk Competitive Risk
Political Risk
Analyzing Past Patterns Analyzing Opinions Examining Social and Economic Conditions
Monetary Risk
Exchange Rate Changes
Differences in the exchange rates can create gains or losses
Mobility of Funds
Liquidity among countries varies
Competitive Risk
Making Operations Compatible Spreading Risk Following Competitors of Customers Heading Off Competition
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall
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Copyright 2013 Pearson Education, Inc. publishing as Prentice Hall